RE: RE: RE: any thoughts on this? from the sedi insider reports
Excell 100,000
Pooler 50,000
McKeever 500,000
McInnis 305,000
Tech 39,251,176 shares from AME asset purchase
mgmt shareholdings are almost non existent
I met with mgmt last summer and they were talking about the need to finance again, at that time I strongly suggested they tweak their deal with KGHM, KGHM is carrying AME development costs through to production and buying the next 29% of the project so there is an opportunity to work out a solution
i.e. KGHM buys 29% for $25 mill (or whatever the final price ends up to be but it will be less than the advertised $30 mill maximum), that $25 mill payment is added to the production funds as a contribution by AME so it is applied against the development loan AME will have to pay back to KGHM, if KGHM put $20 mill against the development loan and actually gave AME the extra $5 mill cash then AME would not have a cash shortage and they would not have to dilute again, great deal for AME and it costs KGHM nothing except a very small change to their development loan to AME
KGHM is buying the last 29% for a p[rice that is undervaluedl by any metric or comparison you chose to use but still AME couldnt work out a cash solution with KGHM, I have to wonder how close a working relationship/partnership AME actually has with KGHM
Im looking forward to seeing who participated in the PP, maybe mgmt invested through the PP, I dont know but everyone thought a PP was coming for the last several months so the share price had no chance of going much higher, I acutally thought they would do the PP at .20, I assume some of the non-mgmt participants are still selling shares into the market to cover their purchase price on the new PP, hopefuly once that ends the share price can move up
as a sharheolder Id be a lot happier if mgmt had some skin in the game, if mgmt purchased shares in the market rather than just collecting salaries and options, if mgmt found creative ways to minimize dilution, if mgmt kept shareholders more informed about the company, if mgmt created shareholder value that was recognized through share pice increases
I participated in the Dec 2009 financing at .20 with a full warrant at .30 (good for 36 months), so this weeks financing is pretty much on par with two yrs ago, not great share performance considering the significant advances in the project since that time (partnering with KGHM and moving the project to a construction decision), as a shareholder I have to question what value has been created versus what value has been given away??